A firm’s net profit margin is a key indicator of its profitability. Analyzing it can tell potential investors whether the business may be a good bet.

Gross profit margin and net profit margin are two profitability ratios used to assess a company's financial stability and overall profitability.

What Are the 3 Types of Profit Margin? Gross profit margin, operating profit margin, and net profit margin are the three main types of profit margin.

Net profit margin is a key financial metric that measures the percentage of revenue left as profit after all expenses are deducted. Investors and businesses can use the net profit margin to assess ...

Learn how to calculate net profit margin. Use it to find the net income or profit of a company by seeing a useful example.

For example, if a business has $1 million in total sales and its total costs equal $800,000, its net profit margin is $200,000 divided by $1 million or 20 percent.

Net margin is the percentage of revenue after operating expenses, preferred stock dividends, interest and tax are subtracted from the total revenue.

For example, if your revenue is $100,000, and your expenses are $60,000, your net profit margin would be (100,000 - 60,000)/100,000, resulting in a net profit margin of 40%.

Operating margin measures the percentage of revenue a company keeps as operating profit. This is an important metric because it indicates to investors the profitability of a business and offers a ...